State Bank of India’s Malé branch has opened a public auction for the leasehold rights and attached assets of Maavelavaru Island in Noonu Atoll, offering the property with a reserve price of USD 124 million. The auction places a major tourism-linked island asset on the market and is expected to draw interest from investors and industry stakeholders seeking opportunities in the Maldives’ established resort sector. Situated in one of the country’s prominent atolls for tourism development, Maavelavaru Island represents a substantial hospitality property with attached operational and physical assets that may appeal to parties looking to strengthen or expand their presence in the Maldivian tourism market.
The sale follows a Civil Court judgement dated 21 June 2026 in enforcement case number 1950/Cv-C/2019, involving State Bank of India Maldives and others against Athama Investments Private Limited and others. According to the sale notice, the court has granted SBI Malé permission to sell the mortgaged property in order to recover outstanding dues linked to loans obtained by Athama Investments Private Limited. The process reflects the operation of legal and financial recovery mechanisms within the Maldives and demonstrates the continued importance of regulatory and judicial procedures in addressing large-scale commercial obligations connected to resort investments.
The property listed for auction includes the leasehold rights of Maavelavaru Island together with buildings, structures, machinery, equipment, furniture, fittings, chattels, linens, stocks and other assets usable in and attached to the island. This indicates that the offering extends beyond land rights alone and includes a broad range of supporting resort-related assets, giving potential buyers an opportunity to assess a more complete tourism property package. In the context of the Maldives’ globally recognised hospitality industry, such offerings can be of notable significance, particularly when they involve an island asset in a sought-after atoll with the underlying infrastructure and operational components associated with resort development.
The auction period runs from 30 June 2026 to 20 July 2026 during working hours at SBI Malé. Applications are required to be submitted in sealed envelopes together with a copy of the applicant’s national identity card. Where the bidder is a company, the application must also include a copy of the company registration and a board resolution authorising participation in the auction. These requirements set out a structured bidding process intended to ensure transparency, proper authorisation and the orderly participation of both individual and corporate bidders in what is expected to be a closely watched sale.
Applicants are also required to submit an earnest money deposit of USD 500,000 with their bid. For successful bidders, this amount will be adjusted against the final bid value, while unsuccessful bidders will have the deposit refunded. The sale notice further states that if a successful bidder fails to comply with the auction terms, the deposit will be forfeited to the bank. The opening of bids is scheduled for 20 July 2026, or the next working day, at 5:00pm at the bank premises in the presence of bidders and at least three committee members. The reserve price established by the bank will serve as the starting point for the bidding process.
If more than one successful bidder offers the same price, spot bidding will be conducted immediately among those bidders, with the incremental amount for each spot bid set at USD 50,000. Under the payment terms, the successful bidder must deposit USD 10 million within 15 calendar days from the award of the bid, with the balance payable within 60 calendar days. The bank has also reserved the right to amend the payment terms. The notice states that if the successful bidder fails to honour the payment commitments, USD 2 million, equivalent to 20 percent of the initial USD 10 million payment, will be forfeited. In addition, the bank will have the right to sell the property to the next highest bidder if the first instalment is not paid within the required period.
The sale is being conducted on an “as is where is” basis, meaning interested parties are expected to carry out their own assessments of the island and its attached assets within the framework of the auction conditions. According to the notice, the proceeds from the sale will be used to liquidate the account, and any excess amount remaining after recovery of bank dues, legal expenses, property tax and other applicable costs will be returned to the borrowers or guarantors. This reflects a formal recovery process attached to a high-value resort property and highlights the commercial scale at which tourism-related investments continue to operate in the Maldives.
The auction of Maavelavaru Island is likely to attract attention within regional and international business circles, given the Maldives’ enduring position as one of the world’s leading luxury island destinations. Resort assets in the country continue to hold strong long-term relevance because of the Maldives’ distinctive geography, premium tourism profile and sustained global visibility among travellers and investors. In that context, the offering of Maavelavaru Island may be viewed not only as a financial recovery exercise, but also as an opportunity for renewed investment in a resort property within one of the Maldives’ important tourism atolls.
advertisment
advertisment
